sam and nancy are married and file a joint tax return every year since 2002. in
ID: 2490078 • Letter: S
Question
sam and nancy are married and file a joint tax return every year since 2002. in 2011 their AGI before taking any capital loss into consideration was 75000. sam and nancy had a capital loss in 2011 of 20000 . their only potential itemized deduction in 2011 was state and local income taxes of 11600. in 2012 they had the following transactions for tax purposes:
wage 90000
long term capital gain 12000
IRC section 1244 loss 10000
state income tax refund 5000
how much capital loss is included ? and what is the 2012 AGI ?
Explanation / Answer
Capital loss to be included is $3000
Total AGI
Wages = $90000
LTCG = $0
IRC Section 1244 loss = $0
Capital Loss = ($3000)
Total AGI = $87000
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